Correlation Between Cicor Technologies and Bellevue Group
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies and Bellevue Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cicor Technologies and Bellevue Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Bellevue Group AG, you can compare the effects of market volatilities on Cicor Technologies and Bellevue Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cicor Technologies with a short position of Bellevue Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Bellevue Group.
Diversification Opportunities for Cicor Technologies and Bellevue Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cicor and Bellevue is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Bellevue Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Group AG and Cicor Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cicor Technologies are associated (or correlated) with Bellevue Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Group AG has no effect on the direction of Cicor Technologies i.e., Cicor Technologies and Bellevue Group go up and down completely randomly.
Pair Corralation between Cicor Technologies and Bellevue Group
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 0.59 times more return on investment than Bellevue Group. However, Cicor Technologies is 1.7 times less risky than Bellevue Group. It trades about 0.07 of its potential returns per unit of risk. Bellevue Group AG is currently generating about -0.08 per unit of risk. If you would invest 4,310 in Cicor Technologies on August 28, 2024 and sell it today you would earn a total of 1,350 from holding Cicor Technologies or generate 31.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Bellevue Group AG
Performance |
| Timeline |
| Cicor Technologies |
| Bellevue Group AG |
Cicor Technologies and Bellevue Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Bellevue Group
The main advantage of trading using opposite Cicor Technologies and Bellevue Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies position performs unexpectedly, Bellevue Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bellevue Group will offset losses from the drop in Bellevue Group's long position.| Cicor Technologies vs. Santhera Pharmaceuticals Holding | Cicor Technologies vs. Newron Pharmaceuticals SpA | Cicor Technologies vs. Basilea Pharmaceutica AG | Cicor Technologies vs. Evolva Holding SA |
| Bellevue Group vs. BB Biotech AG | Bellevue Group vs. Leonteq AG | Bellevue Group vs. Helvetia Holding AG | Bellevue Group vs. EFG International AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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